Shropshire posts at risk as hundreds of railway freight jobs to go

DB Cargo is planning to cut almost 30 per cent of its UK workforce, which amounts to 893 jobs across the business.

The German-owned company said the rail freight industry was facing "unprecedented challenges" because of the fall in its core markets, such as coal.

The move by the company, which was rebranded from DB Schenker Rail in March, raises serious questions about the £7.75 million Donnington terminal in Telford.

It was hoped that when DB Cargo took over the site in 2013 it would give the town an economic boost.

But the job losses cast a doubt about the future of the site.

The company today refused to say how many people it now employed at Donnington.

But its boss said he was faced with making difficult choices for the future.

Hans-Georg Werner, chief executive of DB Cargo UK, said: "Responsible and successful businesses must evolve and reshape as their markets change. Sometimes this means making tough decisions.

"While this is a difficult time for all of us at DB Cargo UK, reshaping the company will enable us to build a business for the future and protect the majority of jobs.

"We are fully committed to supporting colleagues who may be at risk of redundancy."

Telford International Railfreight Park was opened in June 2009 and has the capacity to load or unload up to four freight trains a day, but was criticised as a "white elephant" as it struggled to get off the ground.

As well as Telford, Doncaster-based DB Cargo also operates Wolverhampton Steel Terminal at Monmore Green, a depot at Bescot, Walsall, and another site in Stoke-on-Trent.

Mr Werner said: "We firmly believe in the future of rail freight in the UK. Our motorways and roads are becoming more congested and rail offers fast and clean supply chain solutions. Our new business strategy will ensure we are a perfect logistics partner of choice for customers across all sectors – including construction, automotive and intermodal – long into the future."

Mick Cash, general secretary of the Rail, Maritime and Transport union, said: "This is devastating news brought on through a combination of cut-throat practices in the UK rail freight industry and a shocking lack of Government support for this key section of our transport infrastructure.

"RMT's executive will be meeting this afternoon to consider our response but it is imperative right now that the Government intervene to save skilled jobs in the rail freight industry which are being butchered before their eyes due to a lack of action to protect steel, coal and the rest of our manufacturing base."